Zhejiang China Light & Textile Industrial City Group Co., Ltd. (600790) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang China Light & Textile Industrial City Group Co., Ltd.

Why is Zhejiang China Light & Textile Industrial City Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.20% and Operating profit at -27.52% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY -50.43 MM has Grown at -266.83%
INTEREST(HY) At CNY 39.31 MM has Grown at 85.03%
ROCE(HY) Lowest at 1.84%

With ROE of 2.17%, it has a expensive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of -11.29%, its profits have fallen by -34%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.29% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Zhejiang China Light & Textile Industrial City Group Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang China Light & Textile Industrial City Group Co., Ltd.

-10.02%

0.34

30.67%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.20%

EBIT Growth (5y)

-27.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

21.19%

Dividend Payout Ratio

115.72%

Pledged Shares

Institutional Holding

ROCE (avg)

4.22%

ROE (avg)

8.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

94.24

EV to EBITDA

21.25

EV to Capital Employed

0.90

EV to Sales

8.45

PEG Ratio

Dividend Yield

3.10%

ROCE (Latest)

0.95%

ROE (Latest)

2.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 761.24 MM

-23What is not working for the Company

NET PROFIT(HY)

At CNY -50.43 MM has Grown at -266.83%

INTEREST(HY)

At CNY 39.31 MM has Grown at 85.03%

ROCE(HY)

Lowest at 1.84%

DEBT-EQUITY RATIO (HY)

Highest at 29.9 %

RAW MATERIAL COST(Y)

Grown by 32.67% (YoY

NET SALES(Q)

Lowest at CNY 187.86 MM

PRE-TAX PROFIT(Q)

At CNY 23.76 MM has Fallen at -31.42%

Here's what is working for Zhejiang China Light & Textile Industrial City Group Co., Ltd.

Operating Cash Flow

Highest at CNY 761.24 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Zhejiang China Light & Textile Industrial City Group Co., Ltd.

Net Profit

At CNY -50.43 MM has Grown at -266.83%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 39.31 MM has Grown at 85.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 29.9 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CNY 187.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 187.86 MM has Fallen at -11.06%

over average net sales of the previous four periods of CNY 211.21 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 23.76 MM has Fallen at -31.42%

over average net sales of the previous four periods of CNY 34.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 32.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales